July 20, 1998






Todd Kahn, Esq.
Salant Corporation
1114 Avenue of the Americas
New York, New York 10036

Dear Todd:

         Reference  is  hereby  made to the  Employment  Agreement  ("Employment
Agreement"),  dated May 1, 1997  between  yourself  as the  employee  and Salant
Corporation ("Salant").

         We have mutually agreed to amend the Employment  Agreement effective as
of the date of this letter as follows:

         1. A new third sentence of Section 3(b) of the Employment  Agreement is
hereby added with the following:

                "As part of the Management Retention Program established in 1998
         (the "1998 MRP"),  for the 1998 Fiscal  Year,  and no other fiscal year
         thereafter,  the Employee shall receive as a minimum,  the bonus amount
         provided  in  Paragraph  A of Exhibit  1,  provided  that the  Employee
         maintains his employment with the Corporation  until February 15, 1999,
         other  than  pursuant  to a  termination  of the  Employment  Period as
         described in Sections 6(d) or 6(e).

         2. Section 6(d) (iii) is hereby deleted in its entirety and substituted
with the following therefore:
                  "pro-rated  Bonus  for the  Fiscal  Year in which  termination
         occurs,  payable in accordance with Section 3(b), and any Bonus for the
         Fiscal Year earned but not yet paid,  including without  limitation the
         entire 1998 MRP,  payable in a lump sum within  fifteen (15) days after
         the Termination Date."

         Except as  specifically  set forth  herein,  the  Employment  Agreement
remains in full force and effect and is hereby ratified, confirmed and approved.
The  Employment  Agreement as modified by this letter is the only agreement that
governs the term of your employment. All other Letter Agreements and memorandums
are hereby null and void.

         If the foregoing correctly sets forth our mutual agreement, please sign
and return to me the three attached copies of this letter.

                                                     Very truly yours,

                                                     SALANT CORPORATION



                                                    By__________________________
                                                       Jerald S. Politzer
                                                       Chairman of the Board and
                                                       Chief Executive Officer

Accepted and Agreed to


By______________________
  Todd Kahn